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Excessive Speculation in the Natural Gas Market

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Abstract
The Senate Committee on Homeland Security and Governmental Affairs' Permanent Subcommittee on Investigations investigated the behavior of natural gas prices early in 2006, specifically the high price point. The findings showed that Amaranth Advisors, the dominating firm in the U.S natural gas market, took actions in trading large volumes of natural gas that led to raised prices. In addition, Amaranth displayed that there were no restrictions on trade in regard to the size of its positions, showing that current restraints on speculative trading are inadequate.
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2007-06-25
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